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| *Ostroff, Fair and Company>>>Renting & Real Estate |
UK Buy to Let Mortgage Is this possible? |
House of purchase 拢90.000 2 bed ground floor flat deposit 拢10.000 My Anual Income 拢60.000 Term between 20-25 yrs Repayment - Buy to Let Rental potential: 拢350pcm Is this realistic or is my deposit too low?? What will the repayments likley to be? Does you think this is a sound investment? You will need to put a deposit of at least 15% which will equate to 拢13,500 based on a purchase price of 拢90,000. Some lenders will want a 25% deposit minimum. You should consider taking the mortgage out on an interest only basis as you are able to reclaim tax relief on the interest payments. This will not stop you making overpayments of lump sum repayments if you wish to reduce the capital balance. Try Mortgage Express or Paragon - they are good buy to let lenders who will not require verification of your income (although that is plenty to support your mortgage). They both have websites to pay them a visit. In terms of mortgage repayments, based on a mortgage of 拢76,500 (i.e. a 15% deposit) your monthly repayment will be approx. 拢382 per month based on an interest only mortgage. I have used a 6% interest rate - don't forget fixing your rate for an initial period will help stabilise your mortgage repayments. Source(s): FPC qualified . Financial Services experience + 20 years. Mortgage Advisor go onto www.natwest.com and click on mortgages, on here is a mortgage calculater which works out your monthly repayments and aslo works them out according to what interest rates you will pay etc. It is really simple and easy to use. I always thought that buying to let was a good idea, but sometimes it falls through. I would suggest seeking the advice of a finacial advisor or mortgage broker, they are more experienced. The only way to see if it will be a good investment is to analyse what area the property is in, are most of the houses owned? If so buying to let wont be a good idea as most people in that area buy their own house. Are there students around? what would the rent be? etc. |
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